Dobson Revenue Rising

Dobson Communications (DCEL) posted a modest net subscriber drop for the second quarter, but average revenue per user rose both sequentially and from a year ago.

The Oklahoma City-based provider of wireless phone services to rural markets said it added 131,500 gross subscribers during the quarter ended June 30. But net users dropped by 1,100, as the company's postpaid customer base declined by 9,000.

The company expects churn, measuring monthly customer defections, to hit 2.25%, which is down from the first quarter's 2.43% but up from the year-ago 1.68%.

Dobson expects that ARPU for the second quarter will be $45.25, compared with $42.94 for the first quarter and $40.03 for the second quarter last year.

Roaming minutes of use surged to 517 million from 395 million in the first quarter and 384 million a year earlier. Dobson said it continues to discuss a possible roaming-agreement amendment with Cingular, the biggest U.S. cell-phone service provider.

Dobson shares rose 27 cents late Wednesday to $5.80. The company's stock has risen fivefold over the last year.

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